Professional Documents
Culture Documents
Howard Bowen’s Social Responsibilities of Ealls & Walton - concern w the needs and goals of
the Businessmen book marks the modern society, beyond the merely economic
period of literature in this subj
Father of CSR only survive in an effectively functioning free
no panacea, but contains important truth society if supporting & improving social
that must guide future businessmen order
Davis - nebulous idea be seen in managerial Backman - objs/motives that should eb given
context weight by business
Davis and Blostrom - person’s oblig to consider Preston & Post - defined SR as “public
effects of decisions and actions responsibility” -> function of org mngmnt w/in
specific context of public life
consider needs&interest of others, look -> scope of managerial respon isnt unlimited
beyond firm’s technical interest
Fitch - defined CSR in terms of solving social
Walton- diff models of SR problems
intimacy of relationships bet corp & soc serious attempt to solve social probs
Must be kept in mind by top managers caused wholly or in part by corp
To be socially respon, must identify & define
Johnson - pursuit of socioecon goals thru prob, decide wc to attack 1st, distinction bet
elaboration of social norms social & nonsocial probs
business takes place w/in socio-cultural Carrol - 4 part definition of CSR embedded in a
system model of CSP (corp social perf)
Manne & Wallich - three elements of CSR: should fulfill economic, legal, ethical,
discretionary responsibility
In order to engage in CSP they needed to
1. To qualify as socially respon corp action
2. marginal returns < returns available have:
Basic def of CSR
3. Purely voluntarily
Undrstanding of issues
4. Must be an actual corp expenditure rather
Specification of philo of responsiveness
than a conduit
ECONOMIC RESPONSIBILITY -
Prof. Wallich - 3 basic elements of CSR
Setting of objectives expectations society has orgs at a given
Decision whether to pursue them point of time
business intstitution is the basic econ unit of
Financing of objs
soc
LEGAL RESPONSIBILITY - expect
> they must be defensible, but he favored
business to obey the law
stockholder instructions
law is basic “rule of game”
1
ETHICAL RESPONSIBILITY - Kinds of THREE RESPONSIBILITIES OF MNGMNT:
behaviors and ethical norms that soc
expects business 2 follow 1. Make profit
beyond what is required by law 2. Satisfy employees
DISCRETIONARY RESPONSIBILITY - 3. Be socially responsible
voluntary roles business assumes, but soc 4. will weaken soc if failed to carry out
doesnt provide as clear-cut as an 5. very vigilant civil soc that can maintain
expectation balance
left to manager’s and corp’s judgment ;
driven by social norms Comeback of the neo-classical economic
philisophies - vigilant civilian actions
Tuzzolino and Armandi - need-hierarchy private global enterprises taking over less
framework patterned after Maslow’s hierarchy of efficient enterprises thru buy-outs, joint
needs venture etc
accepted Carrol’s def as appropriate for Wartick & Cochran - “evolution of corp social perf
their purpose model” wc extended 3-dimensional integ of
Helpful to have an ANALYTICAL framework responsibility, responsiveness, & social issues
Their hierarchy didnt redefine CSR,
suggested orgs have CRITERIA that recasted Carrol’s aspects into a framework
needed to be met of PRINCIPLES, PROCESSES &
Orgs have physiological, safety, affiliate, POLICIES
esteem etc needs
Hierarchy as “conceptual tool whereby Epstein - quest to relate social responsibility,
socially respon org perf could be assessed responsiveness, & business ethics
Dow Jones Sustainability Index cited by Holcomb Sibal & Atienza - elements of CSR
> defined Corp Sustainability as a business
approach that creates longterm shareholder 1. Respon beyond prod of goods
value 2. Solve soc problems
3. Broader constituency than SH alone
Schrader - traditional sharing of tasks bet public & 4. Impact
private sector —> new forms of cooperation 5. Wider range of human values
MAIN TRENDS RESPONSIBLE FOR SHIFT OF 6. public image can make/unmake corps
PARADIGMS: 7. Capital &other phys assets (land&bldgs) are
no longer premium factors of production
1. Importance of govt is diminishing - countries BUT people w skills and knowledge
lose a significant part of capability to shape 8. corps -integral part of soc; subsystems of
social agenda soc
3
9. Corps feel the inadequacy of traditional Social involvement disclosure (SID) scale ->
classical econ philosophies measure firm’s CSR
10. Basic idea of CSR -> business & soc Big 8 acctg firm Ernst and Ernst -produced
are interwoven: PRINCIPLES annual unpublished summary
11. Principle of Legitimacy Not designed to define CSR but to get ideas
12. Principle of Public Responsibility abt measuring CSR
13. Principle of Managerial Discretion
(dependent on avaialble opportunities, Cochran & Wood - empirical study on CSR
choices, resources)
whether social responsible firms are also
profitable firms
“The business of business” accdg to Juan Luz & Used “reputation” index as measure of CSR
Teodoro Montelibano - developing people not developed by Milton Moskowitz
only w/in compnay but also in community either “outstanding, honorable mention,
worst”
Admitted weakness of this measure and
Social political contributions such as called for new measures
decreasing pollution, reducing
unemployment, improving leace & order Aupperle, Carrol, Hatfield - empirical study on
relations between CSR and profitability
Sibal & Atienza - practice of CSR is a must for all
orgs used definitional construct of CSR
MAJOR ACTORS OF INDUSTRIAL RELATIONS Priorities of 4 components
SYSTEM: Econ
Legal
1. Leaders Ethical
2. Management/admin Discretionary
3. Govt officials - planner enforcer & equalizer econ- concern for economic perf
Legal,ethical,discretio- concern for society
to be socially respon, efficient & competitive
other actors: orgs w/in academe, media, not every1 sees econ respon as part of
church -> put pressure on both govt officials SocRespon
& corp managers Social orientation - assessed thru
importance it places on 3 non-econ
RELATED STUDIES: components